As of February 2025, the U.S. stock market has shown mixed movements with the S&P 500 inching toward record highs while the Dow Jones Industrial Average dipped slightly amid a series of earnings reports. In this context, identifying undervalued stocks can be particularly appealing to investors looking for opportunities that may not yet be fully recognized by the broader market.

Top 10 Undervalued Stocks Based On Cash Flows In The United States

Click here to see the full list of 177 stocks from our Undervalued US Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool.

Okta

Overview: Okta, Inc. operates as an identity partner both in the United States and internationally, with a market cap of approximately $16.70 billion.

Operations: The company's revenue is primarily derived from its Internet Software & Services segment, which generated $2.53 billion.

Estimated Discount To Fair Value: 32.2%

Okta is trading at US$97.47, significantly below its estimated fair value of US$143.86, suggesting it may be undervalued based on cash flows. The company recently reported a shift from a net loss to a net income of US$16 million for the third quarter, with annual revenue growth expected at 15%. Okta's partnership with McLaren Racing and Persona enhances its strategic positioning in digital infrastructure and identity verification solutions.

• According our earnings growth report, there's an indication that Okta might be ready to expand.
• Dive into the specifics of Okta here with our thorough financial health report.

Silicon Laboratories

Overview: Silicon Laboratories Inc. is a fabless semiconductor company offering analog-intensive mixed-signal solutions across the United States, China, Taiwan, and internationally, with a market cap of approximately $4.84 billion.

Operations: The company's revenue primarily comes from its Mixed-Signal Analog Intensive Products segment, generating $584.39 million.

Estimated Discount To Fair Value: 18.8%

Silicon Laboratories trades at US$147.4, under its estimated fair value of US$181.5, reflecting potential undervaluation based on cash flows. Earnings are projected to grow significantly, with revenue expected to expand over 20% annually, surpassing market averages. Recent product launches like the BG22L and BG24L SoCs enhance its Bluetooth offerings for IoT applications, potentially boosting future cash flows despite current net losses narrowing from previous years.

• The analysis detailed in our Silicon Laboratories growth report hints at robust future financial performance.
• Get an in-depth perspective on Silicon Laboratories' balance sheet by reading our health report here.

AbbVie

Overview: AbbVie Inc. is a global pharmaceutical company focused on discovering, developing, manufacturing, and selling medications with a market cap of approximately $338.85 billion.

Operations: AbbVie's revenue is primarily derived from its Innovative Medicines and Therapies segment, which generated $56.33 billion.

Estimated Discount To Fair Value: 49.9%

AbbVie trades at US$192.97, significantly below its estimated fair value of US$385.39, highlighting potential undervaluation based on cash flows. Despite high debt levels, earnings are forecast to grow substantially faster than the market average over the next three years. The recent expansion of a strategic alliance with AbCellera for oncology treatments and a new US$3 billion revolving credit facility enhance its financial flexibility and innovation capacity in key therapeutic areas.

• Upon reviewing our latest growth report, AbbVie's projected financial performance appears quite optimistic.
• Delve into the full analysis health report here for a deeper understanding of AbbVie.

Turning Ideas Into Actions

• Investigate our full lineup of 177 Undervalued US Stocks Based On Cash Flows right here.
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Looking For Alternative Opportunities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NasdaqGS:OKTA NasdaqGS:SLAB and NYSE:ABBV.

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